When it comes to property, many of us feel like we’re meant to just know how it all works. But the truth is, a lot of people—from all walks of life—don’t get taught the basics. 


If you’re in a similar boat, this guide is here to walk you through the absolute basics. From understanding property types to the different ways homes are bought and sold, here’s what you need to know.

The Different Types of Property

When searching online for a property, you’re often asked to filter by type: house, townhouse, apartment, unit, etc. But here’s the catch—these categories aren’t always used consistently. What one person calls an “apartment,” another might call a “unit.”

Here’s a simplified breakdown:

• Studio Apartment: One room that includes the bedroom, living, and kitchen space—think of it like a hotel room with a bathroom.
  

• Apartment: A self-contained property within a multi-storey building, usually with other apartments above or below. You’ll often be part of a body corporate (also known as an owner’s corporation in Victoria), which manages shared spaces.
  

• Unit: Typically a single-level dwelling that sits side-by-side with others in a small complex. Often has a courtyard or small outdoor space, and may or may not be part of a body corporate.
  

• Townhouse: A multi-level property (usually two stories) that may be joined to others, often with shared driveways or land. Can be on a strata title or a separate title.
  

• House: A freestanding property on its own block of land. It can be single or double-storey, old or new, and usually has no shared land.
  

• Period Home: Common in older suburbs, these include styles like Victorian, Edwardian, Art Deco, or Californian Bungalow—typically built between the 1800s and early 1900s.
  

How Property Is Sold

There are two main ways homes are sold in Australia: auction and private sale.

Auctions

An auction is a public sale where buyers bid against each other. The highest bid above the reserve price wins. The reserve price is the minimum amount the seller is willing to accept, and it can change—even during the auction.

If bidding doesn’t reach the reserve, the property may pass in, giving the highest bidder the chance to negotiate directly with the seller. It’s important to know that when you buy at auction, the sale is unconditional. That means no cooling-off period and no backing out after signing the contract.

Private Sales

In a private sale, buyers submit offers and negotiate terms directly with the agent. Unlike auctions, there are no standardised rules, and the process can vary widely—even between agents in the same agency.

There are also variations like:

• Best and highest offer: You get one chance to submit your best price—no second chances.
• Expressions of interest: Similar to tendering, with offers collected by a set deadline.
• Private negotiation: Offers and counter-offers go back and forth until a deal is made.

Understanding the agent’s process upfront is crucial, as there are no uniform rules.

Cooling-Off Periods

In Victoria, private sales come with a three business day cooling-off period, starting from when the buyer signs the contract. During this time, the buyer can withdraw from the purchase, but will need to pay a penalty (0.2% of the purchase price).

However, cooling-off doesn’t apply:

• To properties bought at auction.
• Within three business days before or after a scheduled auction.
  

This means buyers must do all their due diligence—inspections, legal checks, etc.—before attending an auction.

Where to Find Properties

Most buyers begin their search online using real estate platforms. But not every property is listed there. Off-market properties are homes that are for sale but not advertised publicly. They’re often sold through direct agent connections or buyer’s advocates.

There are also pre-market properties—homes that are about to be listed but aren’t public yet. Being proactive and talking to agents can help you access these before the wider market does.

Why might a seller go off-market?

• To save on advertising costs
• For privacy
• Due to personal circumstances
• They’re testing the waters before committing to a campaign
  

These properties can be great opportunities but may also come with less committed sellers—so stay aware.

Your Homework

• Explore your state’s property laws: If you check out the show notes of this episode, we’ve linked to each state government’s consumer affairs website. These are goldmines of information on buying rules, cooling-off periods, and legal protections.
  

• Start a glossary: Make a list of property terms as you come across them. It’s an easy way to build confidence fast.
  

• Reach out to local agents: Even if you’re not ready to buy, start the conversation.

Final Thoughts

Buying a property is one of the biggest decisions you’ll make—and it’s completely okay to start from scratch. With the right guidance and a bit of self-education, the process becomes far less intimidating.

If you’re just starting your property journey, make it a goal to understand the basics before diving into the deep end. 

Know your property types, the sale methods, and the language agents use. From there, you’ll be ready to take the next step with confidence.